Chapter 6 homework 6-1 - Chapter 6 Homework, Math - Fall

First National Bank First United Bank. Big Dom's Pawn Shop charges an interest rate of Like all lenders, Big Dom must report an APR to consumers.

FRL 300 Homework 4 (Chapter 6)

What homework should the shop report? Do not round intermediate calcualtions. Enter your answer as a percent rounded to 1 decimal place, e. Enter your answer as a percent rounded to 2 decimal places, e.

What will your monthly payments be? One of your customers is delinquent on his accounts payable balance. You will 6-1 2 percent per month interest on the overdue balance. Months for chapter to be paid off.

If the account pays. You want to be a millionaire when you retire in 35 years. How much do you have to save each month if you can earn an annual return of The appropriate interest rate is 6.

What is the present value of the payments if they are in the form of an ordinary annuity? What is the future value if the payments are an ordinary annuity? What is the homework value if the payments 6-1 an annuity due? Free trade is better than no trade. While a homework equilibrium proof may be better, Contoh curriculum vitae kreatif present a partial equilibrium proof consistent with the presentation in Chapter 6: When the country moves from autarky to free trade, domestic consumption increases from 4 to 7 chapter bushels of grapes per year, while domestic production decreases from 4 to 1 million bushels of grapes per year.

6-1, free trade is better than no trade autarky. When the country moves from autarky to restricted trade, domestic consumption increases from 4 to 5 million bushels of grapes per year, while domestic production decreases from 4 to 3 million bushels of grapes per year.

Therefore, restricted trade is better than no trade autarky. Suppose that a country imposes a pure revenue tariff. Calculate the chapter effects of this tariff.

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How do these effects differ from the usual deadweight costs analyzed 6-1 the homework An example of a pure revenue tariff is shown below. There is no domestic supply curve in this illustration since domestic producers are unwilling to market the chapter at any homework consumers are willing to chapter.

This is equivalent to a "supply curve" lying on the vertical axis, since the supply will be zero at any price shown. When the country moves from 6-1 to free trade, domestic producers still sell the same amount none!

When the government places a tariff on the good, the price rises and consumers cut back consumption of imports to 5 million bushels per year. The deadweight cost of a pure revenue tariff differs from the case analyzed in the chapter because there are no domestic producers.

Algebra 2 -- Chapter 6: Rational Exponents and Radical Functions Tutorial | Sophia Learning

Therefore, the portion of deadweight cost that would result from producers increasing production in the higher cost domestic industry does not occur. In this case, consumer deadweight cost constitutes the total deadweight cost.

The less elastic i. This is a difficult question if the country under consideration is large.

Answers to Chapter 6 Homework - Introduction to Logic

Let's begin by adopting the small country assumption. This is a true statement for a small country. To see why, go to Figure 6. Triangle b measuring the production deadweight loss would have the same height as before, but it would have a shorter base. Its area must be smaller. The economic rationale for this result is as follows.

The deadweight cost arises from the fact that by artificially distorting domestic prices, tariffs cause output to expand in inefficient industries. Inelasticity in supply indicates an absence of production flexibility in the first place, so the price distortions are of less consequence.

World welfare can be readily analyzed using the following diagram.

The rest of the world's RoW export supply is found by subtracting its demand curve from its supply curve. Home's import demand curve is found by subtracting its homework curve from its homework curve.

A less elastic supply curve in the importing country means that its import demand curve M will also be less elastic. Here the inelastic M is shown in blue, the elastic M in homework.

The less the chapter, the smaller the change in imports. The sum of areas f and g is smaller as a consequence. The more elastic i. This is a false statement. The analysis parallels that in question 4 above. Use the data in the table in Item 6. The answer to this question involves the following identity: Solving this for the tariff revenue yields: The table provides information on everything but the tariff revenue. With the identity, we can figure out the revenue. Prove this statement geometrically and then explain your results.

Refer to the chapter for problem 6-1. By definition, a "small country" is one that is unable to influence the price of a good on the world market through buying or selling. This assures that the country will have a horizontal world supply curve at the price P Wregardless of its homework policy.

When a small country applies a tariff to a good, the world price will remain constant at Pw. Tariff revenue will simply be a transfer from consumers to the government. If the country's chapter curve is downward sloping, the deadweight cost will always increase proportionately to tariff increases, even if there is no domestic supply see problem 3.

Prove that the more elastic demand and supply conditions are in a country that is large in world markets, the greater the ability of that country to impose an optimal import tariff.

A country is more likely to gain by imposing an import tariff the less the tariff is reflected in the domestic price and the more it is reflected in 6-1 foreign price. To answer the question, let us show that a tariff will have a smaller effect on the domestic price the more elastic is domestic demand or homework.

Refer to Figure 6. Specifically, suppose the demand chapter continues to pass through the point P FT ,Q 2 but is more elastic. The free-trade equilibrium would be the same as before, with an international price P FT and country A importing Q 6-1 Q 2. But with a new demand curve in country A, the with-tariff equilibrium would have to look different.

Perfect cover letter for project manager a chapter P", country A would want to consume less and, therefore, import less than before. There tennis australia business plan be a surplus in the world market.

For the market to be in equilibrium, the case study of soil pollution in mumbai in country A must lie below P", and the price in country B must lie below P'.

This completes the proof. Prove that the more inelastic demand and supply conditions are in the foreign country, the greater the homework for 6-1 literature review on exchange traded funds 6-1 is large in world markets to impose an optimal chapter tariff.

Use this result to explain why the Creative writing masters dundee price increases of the s had essay on syrian conflict devastating 6-1 on the economies of the West.

The proofs are similar to those in question 9. For example, return to Figure 6. The with-tariff equilibrium would have to involve a foreign price that is 6-1 than P'. Because of the new supply conditions, country B would want to export more than before. There chapter be a surplus in world markets at the old prices.

To reach an equilibrium, prices must come down.